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Financial Literacy Questions

- Review your free credit report at least once a year from AnnualCreditReport.com. - An excellent credit score is considered 720 to 850. - Maintaining good credit is important as it can affect your interest rates on major purchases like cars and homes.

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87 views6 pages

Financial Literacy Questions

- Review your free credit report at least once a year from AnnualCreditReport.com. - An excellent credit score is considered 720 to 850. - Maintaining good credit is important as it can affect your interest rates on major purchases like cars and homes.

Uploaded by

arrow7330309grena
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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What does being on a budget mean?

You pay bills every month in full and on time

You made a spending plan of your expenses to be less than or equal to your income

You can buy anything you want or need

Your bills are generally paid by every due date

How often should you review your free credit report?

At least once a year

Once every 3 months

Once every 2 years

You can’t get a free credit report

How to obtain a free credit report with no annual fees, authorized by Federal Law?

Annualcreditreport.com

Freecreditreport.com

From the U.S. Department of Treasury

You can’t get a free credit report

What is considered an excellent credit score?

720 to 850

600 to 680
561 to 600

1000 to 1500

Your credit score is important because:

It can affect your interest rate if you finance a car or home

It can have an impact on whether you can finance major purchases

It can determine whether you can get credit cards

All of the above

What is not a method to improve your credit score?

Pay all your bills on time

Keep a positive history on your credit report

Keep your credit card balances under 30% of your credit limit

Always pay in cash and do not get any credit cards

How can you help to fund college education?

Apply for financial aid using the FAFSA and TAP applications

Get a part-time job and adopt a budget

Seek out college scholarships

All of the above

An example of a need is:


A Florida vacation

Books for college

New clothes on sale

A laptop

An example of a want is:

48’ flat screen TV

Room and board

Walking shoes to use on campus

Supplies for a lab class

If I default on my loan, I’ll be able to get one from another lender.

True

False

It helps my credit score to pay my bills each month on time and not skip any month.

True

False

How would you borrow money to buy something now and repay it with future income?

To buy a car to get a much better paying job


To go on summer vacation

To get new clothes on sale

To invest the money because I need to start saving for my retirement

A credit report is:

A list of your financial assets and liabilities

Your monthly credit card statement

A loan and bill payment history

Your credit line with your financial institution

In terms of credit, what does APR stand for?

Annual Percentage Rate

Annual Penalty Rate

Annual Payment Rate

Annual Payoff Rate

Who insures your stocks in the stock market?

The Securities and Exchange Commission

The U.S. Department of the Treasury

No one

Federal law gives you three days to cancel the purchase of a new or used car from a dealer.
True

False

The type of car you own affects the price you pay for auto insurance.

True

False

How many days does a creditor have to acknowledge your written complaint about a billing error?

30 days

60 days

90 days

120 days

Negative financial information can stay on your credit report for how long?

2 years

5 years

7 years

10 years

Federal law requires that warranties be available for you to read before you buy a product.
True

False

In financial transactions, a CD is a:

Certificate of Debt

Certificate of Deposit

Citizen's Deposit

Certificate of Collateral

The “Rule of 72” tells you how long it will take to double your money

True

False

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